Birla Sun Life MF files an offer document

18 Apr 2008 | 11:59

Birla Sun Life MF files an offer document

Name of Fund: Birla Sun Life Enhanced Arbitrage Fund

Scheme: It is an open-ended equity scheme.

Objective: The scheme seeks to generate income by investing predominantly in equity and equity related instruments. The scheme intends to take advantage from the price differentials / mis-pricing prevailing for stock / index in various market segments (cash and future).

Plans: The scheme will have retail plan and institutional plan with a common portfolio.

Investment option: Each plan under the scheme will further have dividend and growth options. Further, dividend option shall have payout, reinvestment and sweep facility. Default option/ facility - dividend option/dividend reinvestment facility.

Asset Allocation: The fund will invest 65-90% in equities and equity-linked instruments. It will have investment of 65-90% in derivatives including index futures, stock futures, index options and stock options. It will have 10-35% investment in debt securities and money market instruments. The investments in securitised debt papers may be made up to 50% of the Net Assets of the scheme.

However, where the scheme has no opportunities in the equity and derivative market, we expect the asset allocation to be as follows:

The fund will invest 0-65% in equities and equity-linked instruments. It will have investment of 0-65% in derivatives including index futures, stock futures, index options and stock options. It will have 35-100% investment in debt securities and money market instruments.

Face Value: Rs 10

Entry Load: It will not charge an entry load.

Exit Load: It is proposed to charge an exit load of 0.75% if units purchased before 90 days from the date of allotment. It levies 0.50% an exit load if units repurchased after 90 days but before 180 days from the date of allotment but before maturity date. There will be no exit load charged if redemption is done on or after 180 days from the date of allotment.

Minimum Investment Amount: Minimum investment under retail plan is Rs 5,000 and in multiples of Re 1 thereafter. Under institutional plan, the minimum investment amount is Rs 5 crore in multiples of Re 1 thereafter.

Minimum subscription amount: Rs 1 crore

Benchmark Index: CRISIL Liquid Fund Index

Fund Manager: Mr. Ajay Garg